© 2009 craft & hobby association. all rights reserved. cha attitude & usage study 2008...
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© 2009 Craft & Hobby Association. All rights reserved.
CHA Attitude & Usage Study 2008 Annual Report
12 Months Ending 12/31/2008
CHA Attitude & Usage Study 2008 Annual Report
12 Months Ending 12/31/2008
© 2009 Craft & Hobby Association. All rights reserved. 22
CHA A&U Study Background Detailed Findings
What’s the State of the Industry Today? What Are the Key Trends? How Do Light, Moderate and Heavy Crafters Differ? How Do Beginner, Intermediate and Expert Crafters Differ? Is Shopping Behavior Changing? How Can You Drive Craft Spending in a Tougher Economy?
Q&A
Agenda
© 2009 Craft & Hobby Association. All rights reserved.
CHA A&U Study Background
© 2009 Craft & Hobby Association. All rights reserved. 44
39 craft segments are monitoredin four broad categories cont.
Needle & Sewing Crafts
Cross-stitch/Embroidery
Knitting
Crocheting
Needlepoint/Plastic Canvas
Other Needlecrafts
Apparel/Fashion Sewing
Craft Sewing
Home Décor Sewing
Quilting
Other Sewing Crafts
Painting & Finishing Crafts
Art & Drawing
Decorative Painting
Fashion Fabric Painting & Decorating
Home Décor Painting/Accessories/Finishing
Stenciling
Other Painting & Finishing Crafts
Floral Crafts
Floral Arranging
Wedding/Bridal
Wreath-making/Floral Accessorizing
Other Floral Crafts
© 2009 Craft & Hobby Association. All rights reserved. 55
39 craft segments are monitoredin four broad categories.
General Crafts Paper Cutting Scrapbooking /Memory Crafts Rubber Stamping Card Making Other Paper Crafts Beading/Bead Crafts Cake Decorating Candle Making Ceramics
Doll Making Do-it-yourself Framing Glass Crafting Jewelry Making Leather Crafts Macramé Non Floral Wreaths Potpourri Making Woodworking Other General Crafts
© 2009 Craft & Hobby Association. All rights reserved. 66
What the Research was Designed to Provide
The A&U successfully provides CHA with:
An overview of crafting households:
Demographics
Behaviors
Attitudes
A means of determining and tracking household participation rates in the US by craft and hobby segment
Shows trends over time
Documentation of shopping patterns by retail channel
Guidelines for sizing the market
Relative size of individual categories and market as a whole
© 2009 Craft & Hobby Association. All rights reserved. 77
What the Research Was NOT Designed to Provide
The survey provides a wealth of data, but is not designed to:
Be a substitute for scanner data Spending behavior is self-reported and is accurate only within a broad
range
Dollar volumes have a wide margin of error, especially for individual craft segments
Changes reported over time can only be guidelines
Distinguish between growth components Growth vs. YAG is driven by 1) real growth, 2) inflation or 3) product
price increases
© 2009 Craft & Hobby Association. All rights reserved. 88
What the Research Was NOT Designed to Provide
(Continued)
Nor is the survey designed to:
Assign attitudes and shopping behavior by: Specific crafting segments (e.g., Quilting, Jewelry-Making, etc.)
Individual demographic targets Information is collected at the household level only
Most households participate in multiple types of crafts
© 2009 Craft & Hobby Association. All rights reserved.
Detailed Findings
© 2009 Craft & Hobby Association. All rights reserved.
What’s the Stateof the Industry Today?
© 2009 Craft & Hobby Association. All rights reserved. 1111
U.S. Retail Sales (Million $)U.S. Retail Sales (Million $)- Among Total U.S. Households -- Among Total U.S. Households -
Market Size = $27,297 Million (Market Size = $27,297 Million (±±11%)11%)
$10,267 Million
$7,266 Million
$6,432 Million
-21% vs. $13,027 Million YAG
-14% vs. $31,799 Million YAG
-12% vs. $7,285 Million YAG
-9% vs. $7,949 Million YAG
Projected Base: 111 Million Total US HouseholdsSpending behavior is self-reported by consumers, and is accurate only within certain ranges.
$3,333 Million-6% vs. $3,538
Million YAG
Data based on 12 months ending December 31, 2008
The craft and hobby industry has not been immune to the current economic crisis. A 14% decline in retail sales has
taken place overall.
Floral Crafts,
12%
General Crafts,
38%
Needle and Sewing Crafts,
27%
Painting and Finishing
Crafts, 24%
© 2009 Craft & Hobby Association. All rights reserved. 1212
While most participation rates remain virtually unchanged since 2007, General Crafts had the most
notable drop-off.
Incidence of CraftingIncidence of Crafting- % of Total U.S. Households -- % of Total U.S. Households -
Participation rates are based on screening data. Screening is conducted among the Ipsos Insight Mail Panel to identify crafters.
On an annual basis, the screener is sent to 50,000 households (25,000 twice a year in May and Nov).
-0.8 pts -5 pts -1.2 pts -1.5 ptsPoint
Changevs. YAG:
Projected Base: 111 Million Total US Households
-1.2 pts
56%
34%30% 29%
16%
57%
39%
31% 31%
17%
Total General Crafts Needle and Sewing Crafts
Painting and Finishing Crafts
Floral Crafts
2008 2007
© 2009 Craft & Hobby Association. All rights reserved. 1313
Annual HH spending declines were seen across all crafting categories, except Floral Crafts.
Average Annual Craft SpendingAverage Annual Craft Spending- By Crafting Category -- By Crafting Category -
Projected Base: 63 Million Total US Crafting Households
-14% -11% -6% -8% ±0%% Changevs. YAG:
Data based on 12 months ending December 31, 2008
$434
$268
$219$195 $183
$505
$300
$233$212
$183
Total General Crafts Needle and Sewing Crafts
Painting and Finishing Crafts
Floral Crafts
2008 2007
© 2009 Craft & Hobby Association. All rights reserved. 1414
Spending on the average project held steady from 2007, with exception of General Crafts, which dropped 11%.
Average Per Project SpendingAverage Per Project Spending- By Crafting Category -- By Crafting Category -
Projected Base: 63 Million Total US Crafting Households
-1% -11% +4% +3% +2%% Changevs. YAG:
Data based on 12 months ending December 31, 2008
$30$26 $27
$35$33
$30 $30$26
$35$32
Total General Crafts Needle and Sewing Crafts
Painting and Finishing Crafts
Floral Crafts
2008 2007
© 2009 Craft & Hobby Association. All rights reserved. 1515
While crafters spent nearly as much time on crafting (per week) as they did the previous year, they completed fewer craft projects, especially in the
Needle and Sewing and Painting and Finishing categories.
14.410.2
8.05.5 5.6
16.6
10.1 8.86.1 5.7
Total General Crafts Needle and Sewing Crafts
Painting and Finishing Crafts
Floral Crafts
2008 2007
Average Number of ProjectsAverage Number of Projects- By Crafting Category -- By Crafting Category -
Projected Base: 63 Million Total US Crafting Households
-13% +1% -9% -10% -1%% Changevs. YAG:
Data based on 12 months ending December 31, 2008
Average Hours Spent Per
Week
2007 2008
5.4 5.0
© 2009 Craft & Hobby Association. All rights reserved. 1616
Scrapbooking continues to generate the largest sales volume, but like many other segments, has declined year over year.
Dollar SalesDollar Sales($Million)($Million)
% Change in total % Change in total spending vs. YAGspending vs. YAG
11 Scrapbooking/Memory Crafts $2,505 -3%
22 Art & Drawing $1,795 -8%
33 Other Painting & Finishing* $1,613 -13%
44 Floral Arranging $1,509 +21%
55 Crocheting $1,207 +17%
Top 5 Crafts – Dollar SalesTop 5 Crafts – Dollar Sales
Data based on 12 months ending December 31, 2008 Projected Base: 63 Million Total US Crafting Households
* Painting & Finishing Crafts other than Art & Drawing, Decorative Painting, Fashion Fabric Painting & Decorating, Home Décor Painting/Accessories/Finishing, Stenciling
© 2009 Craft & Hobby Association. All rights reserved.
What are the Key Trends?
© 2009 Craft & Hobby Association. All rights reserved. 1818
Some segments experienced notable growth, particularly the Needlepoint/Plastic Canvas segment.
Data based on 12 months ending December 31, 2008 Projected Base: 63 Million Total US Crafting Households
Greatest % Segment Sales Growth vs. Year AgoGreatest % Segment Sales Growth vs. Year Ago- Among Total U.S. Households -- Among Total U.S. Households -
Dollar Sales (Mill)
$487
$1,509
$695
$258
$1,207
Segments > $100MM
© 2009 Craft & Hobby Association. All rights reserved. 1919
Many segments showed declines vs. year ago
Data based on 12 months ending December 31, 2008
Greatest % Segment Sales Decline vs. Year AgoGreatest % Segment Sales Decline vs. Year Ago- Among Total U.S. Households -- Among Total U.S. Households -
Projected Base: 63 Million Total US Crafting Households
$153
$367
$219
Dollar Sales (Mill)
$475
$825
$854
Segments > $100MM
© 2009 Craft & Hobby Association. All rights reserved. 2020
Even in the current economy, new growth opportunities are emerging.
When crafting households were asked what NEW crafts they expect they will try in the upcoming year that they currently do not participate in, the segments generating the greatest interest were:
Decorative Painting (3.9%)
Scrapbooking/Memory Crafts (3.2%)
Home Décor Sewing (2.9%)
Needlepoint/Plastic Canvas (2.9%)
Home Décor Painting/Accessorizing/ Finishing (2.9%)
© 2009 Craft & Hobby Association. All rights reserved.
How Do Light, Moderate and Heavy Crafters Differ?
© 2009 Craft & Hobby Association. All rights reserved. 2222
32%
4%
41%
33%
26%
62%
Size of Segment Share of Annual Expenditure
Heavy (21+ Projects)
Moderate (6-20 Projects)
Light (1-5 Projects)
Heavy Crafters, who account for 26% of all crafters, spend far more than their segment size would suggest.
Crafter Type LevelsCrafter Type Levels
Data based on 12 months ending December 31, 2008 Projected Base: 63 Million Total US Crafting Households
CDI
236
81
14
© 2009 Craft & Hobby Association. All rights reserved. 2323
Regardless of crafter type, Scrapbooking is the largest category. Crocheting is more popular among Moderate and Light Crafters, while Jewelry,
Wedding/Bridal and Beading are more common among Heavy Crafters.
Light Crafters
Scrapbooking/Memory
Crocheting
Art & Drawing
Woodworking
Home Décor Painting/Acc/Finishing
Cross-Stitch Embroidery
Home Décor Sewing
Floral Arranging
Quilting
Apparel/Fashion Sewing
Moderate Crafters
Scrapbooking/Memory
Art & Drawing
Crocheting
Floral Arranging
Quilting
Home Décor Painting/Acc/Finishing
Woodworking
Apparel/Fashion Sewing
Cross-Stitch Embroidery
Decorative Painting
Heavy Crafters
Scrapbooking/Memory
Art & Drawing
Floral Arranging
Card Making
Home Décor Painting/Acc/Finishing
Apparel/Fashion Sewing
Quilting
Jewelry Making
Wedding/Bridal
Beading/Bead Crafts
Crafts in black grew from previous year. Crafts in red declined from previous year.
Top Ten CraftsTop Ten Crafts- By Type of Crafter -- By Type of Crafter -
Total $1,220
mill
Total $16,976
mill
Total $9,100
mill
© 2009 Craft & Hobby Association. All rights reserved.
How Do Beginner, Intermediate and Expert Crafters Differ?
© 2009 Craft & Hobby Association. All rights reserved. 2525
The majority of crafters consider themselves to be intermediate in terms of expertise. Expert crafters spend
disproportionately more than other groups
Crafting Ability (Self-Assessment)Crafting Ability (Self-Assessment)
Data based on 12 months ending December 31, 2008 Projected Base: 63 Million Total US Crafting Households
CDI
150
98
6520%
13%
64%
63%
16%24%
Size of Segment Share of Annual Expenditure
Expert
Intermediate
Beginner
© 2009 Craft & Hobby Association. All rights reserved. 2626
While the Top Ten Crafts vary from one level of expertise to the next, several crafts are found to be common across all - Art & Drawing, Crocheting and
Scrapbooking/Memory Crafts (although experts favor more challenging crafts and may need to be encouraged to return to Scrapbooking).
Beginner Crafters
Art & Drawing
Scrapbooking/Memory
Crocheting
Home Décor Painting/Acc/Finishing
Floral Arranging
Doll Making
Home Décor Sewing
Quilting
Needlepoint/Plastic Canvas
Fashion Fabric Paint/Decor
Intermediate Crafters
Scrapbooking/Memory
Art & Drawing
Quilting
Card Making
Floral Arranging
Apparel/Fashion Sewing
Home Décor Painting/Acc/Finishing
Crocheting
Beading/Bead Crafts
Woodworking
Expert Crafters
Floral Arranging
Cross-Stitch Embroidery
Art & Drawing
Wedding/Bridal
Decorative Painting
Jewelry Making
Crocheting
Woodworking
Knitting
Scrapbooking/Memory
Crafts in red declined from previous year. Crafts in black grew from previous year
Top Ten CraftsTop Ten Crafts- By Expertise Level -- By Expertise Level -
Total $3,499
mill
Total $6,646
mill
Total $17,151
mill
© 2009 Craft & Hobby Association. All rights reserved.
Is Shopping Behavior Changing?
© 2009 Craft & Hobby Association. All rights reserved. 2828
The channels where crafters are making their purchases are evolving.
Internet sales continue to grow: Internet +19% (7% of total sales)
Three channels accounted for 60% of Craft sales in 2008, with Craft Chain Stores showing the greatest decline of this group Craft Chain Stores -15% (25% of total sales)
Discount Store -4% (22% of total sales)
Fabric and Craft Stores -1% (13% of total sales)
*Note: The questionnaire was revised in Jan 2008 to more clearly define channels and may account for some of the differences seen here.
Other craft retailers are experiencing more severe declines in sales. Store closures are contributing to the losses for Local Craft Stores. Softening of the Home Décor Painting segment seems to have impacted the Variety Hardware Stores: Craft Fair/Flea Markets -59% (1% of total sales)
Local Craft Stores -57% (3% of total sales)
Variety Hardware Stores -49% (5% of total sales)
© 2009 Craft & Hobby Association. All rights reserved.
How Can You Drive Craft Spending in a Tougher Economy?
© 2009 Craft & Hobby Association. All rights reserved. 3030
As consumers continue to tighten their belts, it’s very important to remind them why they craft in the first place.
A factor analysis reveals eight primary reasons for crafting:
Sense of Accomplishment
Relaxation
Memory Keeping
Health
Economy/Value
Recommended by Friends or Family
Enables Spending Time with Others
Interaction with Children
OPPORTUNITY reinforce these quality-of-life messages in communication vehicles and in-store at point of sale
© 2009 Craft & Hobby Association. All rights reserved. 3131
Emotional drivers are strong influencers of craft sales for all levels of expertise.
Irrespective of ability levels, crafters strongly agree on the following statements:
Completing a craft gives me a feeling of accomplishment
I like to work with my hands
However, Expert level crafters are especially likely to believe that:
I forget about my daily problems when I work on a craft or hobby
Doing crafts or hobbies makes me feel better
I am a creative person
I prefer to craft alone
© 2009 Craft & Hobby Association. All rights reserved. 3232
Reinforce consumers emotional ties to crafting to increase spending.
Emphasize “family fun” and “creativity” The greatest drivers of craft spending are children crafting and
crafting is a creative outlet Consumers are cutting back on entertaining and are spending
more time at home Appeal to the family orientation and inherent desire people have to
be creative
Crafting is fun and an affordable alternative to a day/night on the town
© 2009 Craft & Hobby Association. All rights reserved. 3333
Reinforce consumers emotional ties to crafting to increase spending.
Inspire crafters with the emotional as well as functional aspects of crafting. Emotional - Accomplishment; Relaxation; Spending time with
others or children
Functional - Saving money; Preserving memories; Health/well-being (especially relieves stress)
© 2009 Craft & Hobby Association. All rights reserved. 3434
Prominently displaying a variety of Crafting books and magazines can help generate consumer interest/ideas and sales.
Consider displays both by the checkout and in aisles.
Source of Project IdeasSource of Project Ideas
Data based on 12 months ending December 31, 2008 Projected Base: 63 Million Total US Crafting Households
52%
46%
38%
37%
25%
22%
21%
18%
18%
7%
6%
4%
1%
23%
Magazines
Family/Friends
Books
Catalogs
Store Displays
Craft Fairs/Craft Malls
TV
Internet
Project Sheets
StoreDemonstrations/Classes
School
Clubs
Video
Other
Especially Intermediate and Expert Crafters
Especially Intermediate and Expert Crafters
Especially Beginning and Expert Crafters
© 2009 Craft & Hobby Association. All rights reserved. 3535
Gifting represents a huge opportunity that may be largely untapped.
Usage Of Completed Craft ProjectsUsage Of Completed Craft Projects
Data based on 12 months ending December 31, 2008 Projected Base: 63 Million Total US Crafting Households
% of Crafting HH% of Crafting HH
54%
53%
30%
24%
10%
9%
Personal Use
Gifts
Home Decorating
Holiday Decorating
Items to Sell
Other
Especially Intermediate, Expert and Heavy Crafters
© 2009 Craft & Hobby Association. All rights reserved. 3636
84% of households craft because of a holiday or special occasion
Occasions for Which Crafts are MadeOccasions for Which Crafts are Made
Data based on 12 months ending December 31, 2008 Projected Base: 63 Million Total US Crafting Households
66%
53%
33%
22%
21%
19%
18%
18%
17%
15%
13%
1%
15%
Christmas/Chanukah
Birthdays
Baby shower/New baby
Valentine's Day
Halloween
Easter
Mother's/Father's Day
Weddings
Seasonal Decorating
Thanksgiving
Bridal Showers
Kwanzaa
Other
© 2009 Craft & Hobby Association. All rights reserved. 3737
Crafting classes/parties can be an important way to encourage spending.
Those who attend class/parties spend more than twice as much as those who do not!
Classes should be offered for crafters of all levels – most crafters consider their skills to be “intermediate”. Few Beginners attend but this can be a way to encourage new participants.
Average spending per year
$624$300
Incidence of Attending
92%
8%
Average spending per year$327
Incidence of Attending
$566 $608
Do Not Attend
Host GuestAttendDo Not Attend
Classes Home Parties
Data based on 12 months ending December 31, 2008
92%
5% 3%
© 2009 Craft & Hobby Association. All rights reserved.
Recommendations for CHA Members
© 2009 Craft & Hobby Association. All rights reserved. 3939
Remain sensitive to price due to the economic climate but don’t focus solely on price; remind shoppers about the joys of crafting
Unadvertised sales are also a key influence on purchasing decisions
Don’t limit consumers to brick & mortar hours – Online sales are continuing to increase
People are busy, stores are closing - making around-the-clock online shopping available can help sustain sales. Strive for online success with:
Fun websites with plenty of inspiration ideas
Fast and affordable shipping
Shopping lists, “Items you will need to complete this project” for one-click shopping
Reward your best customers
Heavy Crafters account for a largely disproportionate share of sales
Consider “Frequent Crafter” reward programs to support, and possibly grow, this segment
Grow craft segments by leveraging store layouts to best reflect the cross-participation that exists
Cross-Stitch Embroidery, while not a leading craft, has a high degree of cross participation among the five leading crafts, and is the number two craft among Experts.
Action Steps/Opportunities
© 2009 Craft & Hobby Association. All rights reserved. 4040
Steps CHA Members Can Take Now
Use effective messaging that reflects the crafters needs
A factor analysis revealed eight primary reasons for crafting. To sustain sales it is important to reinforce these quality-of-life messages:
Economy/Value Recommended by Friends/Family Enables Spending Time with Others Interaction with Children
Sense of Accomplishment Relaxation Memory Keeping Health
Emphasize gifting and seasonal crafting 53% of all crafting HH’s report that they make handcrafted items for gift giving.
Generate new entries to the industry by promoting craft sets/packages as great gifts for friends and family
© 2009 Craft & Hobby Association. All rights reserved. 4141
Remind consumers that crafting is fun!
A great way to spend time with kids/family/friends to share a common activity or interest and build relationships
Life is stressful – crafting provides a way to relax
Crafting is a great creative outlet
Steps CHA Members Can Take Now
© 2009 Craft & Hobby Association. All rights reserved. 4242
Accessing the Reports
Reports are free online to CHA Members
All of the reports are available under the RESEARCH tab on www.craftandhobby.org
Company Member ID numbers and passwords are needed to gain access
If you need your Company Member ID number or have any questions about the research, contact Keri Cunningham, Marketing Manager at 201.835.1229 or at [email protected]
© 2009 Craft & Hobby Association. All rights reserved.
Q&A